HK REITS

[soros]

Closing prices at 30 Sept 2013 :

00435.HK - Sunlight Reit $3.04 yld 5.82 %
02778.HK - Champion Reit $3.54 yld 5.90 %
00808.HK - Prosperity Reit $2.39 yld 5.65 %
00405.HK - Yuexui Reit $3.84 yld 8.93 %
00778.HK - Fortune Reit $6.41 yld 5.05 %
01881.HK - Regal Reit $2.27yld 6.17 %
00823.HK - Link Reit $38.05 yld 3.85 %
87001.HK - Hui Xian Y3.83 yld 6.24 % 01275.HK - New Cent Reit 3.67 yld TBA

Average yld = 5.95 %

[opmi]

00823.HK - Link Reit $38.05 yld 3.85 % - looks like a lot of expectations built in.

[soros]

Since May this year , all HK reits prices are lower by 15-25% .

It seems many reit buyers have taken their money away after news of QE3 could be phased out.

[soros]

Closing prices on 31 Dec 2013:

00435.HK - Sunlight Reit $3.00 yld 5.90 %
02778.HK - Champion Reit $3.43 yld 6.09%
00808.HK - Prosperity Reit $2.26 yld 5.97%
00405.HK - Yuexui Reit $3.78 yld 9.07 %
00778.HK - Fortune Reit $6.19 yld 5.23 %
01881.HK - Regal Reit $2.23 yld 6.28 %
00823.HK - Link Reit $37.60 yld 3.90 %
87001.HK - Hui Xian Y3.86 yld 6.19 %.
01270.HK- Langham-SS $3.72
01275.HK- New Cent Reit $3.64

Average yield = 5.97%

[Dividend Hermit]

If I buy Fortune Reit on SGX, is there additional charge for conversion of currency or charges for dividends?

[soros]

If I buy Fortune Reit on SGX, is there additional charge for conversion of currency or charges for dividends?

Some information issued by tax ofice and refers to reduce tax rate for non-residents :

http://www.iras.gov.sg/irashome/page04.a...ust_(REIT)

[Nick]

Just wondering - most of the properties held by HK REITs have underlying land lease expiring by 2047. Any idea whether are they allowed to renew the leases and if so will it be done at a low cost (like in Indonesia) ? If not, the 6% yield is hardly attractive since the Trust NAV will be worthless by 2047.

[safetyfirst]

Just wondering - most of the properties held by HK REITs have underlying land lease expiring by 2047. Any idea whether are they allowed to renew the leases and if so will it be done at a low cost (like in Indonesia) ? If not, the 6% yield is hardly attractive since the Trust NAV will be worthless by 2047.

It seems like nobody has the answers to this but it is expected that the prc govt will allow renewal of the lease, perhaps at some token amount

[thefarside]

Hi Nick

David Webb has this - it was fascinating reading. Suggest you look through.

http://www.webb-site.com/articles/leases1.asp
http://www.webb-site.com/articles/leases2.asp

Basic summary was all the leases expired during the 1997 handover to Beijing. But the new administration allowed a further 50 year extension, to reflect Deng's promise of 50-years of continuity. Future? Unsure as of now, whether Beijing will grant another extension from 2047, and thereafter revert to a normalised commercial lease extension arrangement.

[soros]

Closing prices on 17 Apr 2014:

00435.HK - Sunlight Reit $3.07 yld 5.77 %
02778.HK - Champion Reit $3.57 yld 5.88 %
00808.HK - Prosperity Reit $2.31 yld 6.49 %
00405.HK - Yuexui Reit $3.69 yld 7.51 %
00778.HK - Fortune Reit $6.19 yld 5.82 %
01881.HK - Regal Reit $2.12 yld 7.08 %
00823.HK - Link Reit $38.25 yld 3.83 %
87001.HK - Hui Xian Y3.49 yld 7.05 %.
01270.HK- Langham-SS $3.87 yld 4.86%
01275.HK- New Cent Reit $3.45 yld 4.55%

Average yield = 5.88 %